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Subject:  Re: Hartford Annuities Date:  1/16/2004  1:46 PM
Author:  TTRoberts Number:  38578 of 88031

JLC, writes:

<< As I understand annuities, you're paying an insurance company to guarantee a return payment. Currently, you could ladder 5 year CDs an pretty much get 4.6%, plus keep control of your principle. >>

That's correct.

<< Also, when rates go up and CDs mature, you get a higher rate of return. Die tomorrow, insurance company keeps your principle. In CDs, your estate keeps the money. >>

This is NOT correct.

There are may ways to set up an immediate annuity and there's really only one of the may ways that would result in the insurance keeping the principle. That is when one chooses a life income option with no certain period.

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